2. Create a table showing quantity and the various prices that
consumers are willing to pay and prices that producers are
willing to accept. Use these tables to create an X-Y chart
showing the supply and demand curves. In creating your table,
please make sure that your "anchor" the parameter
values to ones chosen in Step 1. (By doing this, your graphs and
calculations will adjust automatically whenever you change any of
the parameter values).

3. Create an area on your spreadsheet that illustrates the
calculations of equilibrium price and quantity, consumer and
producer surplus and social welfare, and point elasticity. Your
equations for these values should refer to the
"anchored" parameter values chosen in Step 1. For
example:

Equilibrium Price =

Equilibrium Quantity =

Consumer Surplus =

Producer Surplus =

Social Welfare =

Elasticity of Demand =

The second column will contain the formula for each of the
variables using the anchored parameter values.

4. Answer the following questions.

Q1: Solve the above equations for the equilibrium price and
quantity. (This is part of Step 3.)

Q2: What is consumer surplus at the competitive equilibrium?
What is producer surplus at the competitive equilibrium? What is
social welfare at the competitive equilibrium? (This is part of
Step 3.)

Q3: What is the point elasticity of demand at the competitive
equilibrium? (This is part of Step 3.)

Q6: Suppose the government imposes a price ceiling at 50% of
the competitive equilibrium price. Recalculate quantity
demanded and quantity supplied. Recalculate consumer and
producer surplus. What is the deadweight loss?